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Wall Street closed out the week lower as chip names kept sliding; the semiconductor ETF SMH logged its third down-week in four. Pressure built after a Chinese AI lab, Moonshot AI, unveiled a model it says closes the gap with leading U.S. systems, adding to jitters already stirred by fresh U.S. strikes on Iran overnight.

Taiwan Semiconductor topped quarterly estimates but lifted its full-year capex guidance sharply, spooking investors worried about margin pressure. The move rippled into Asia, where SK Hynix — barely a week into its Nasdaq listing — tumbled over 11% in Seoul and Samsung fell more than 7%.

Softer-than-expected inflation data revived risk appetite and pulled the Composite back above 26,100. SK Hynix, however, kept unwinding gains from its Nasdaq debut the week before, with one asset manager attributing the drop to profit-taking and cross-listing arbitrage rather than any change in the company’s fundamentals.

SpaceX’s imminent entry into the Nasdaq-100 was expected to trigger a wave of passive index buying, but it wasn’t enough to offset another leg down in semiconductors — Micron, KLA, Marvell, Broadcom and AMD all fell. The selling spilled into Asia, where South Korea’s Kospi tripped a circuit breaker on its way to a near-5% loss.

A soft June jobs report reshaped expectations for the Fed’s next move, sending the Dow toward a fresh record while tech lagged behind another chip-sector pullback. Tesla shares dropped sharply even after the company cleared delivery forecasts for the quarter — a reminder that sector rotation has been overriding single-stock earnings beats.

The Italian software company behind AOL and Vimeo priced its IPO at $29 and opened at $31, then kept climbing through its first session. The broader Composite still slipped, as traders locked in gains in semiconductor names after a run of more than 80% in the first half of the year.